until recently the top sunday paper in britain. >> i feel regret. clearly the practices of certain individuals did not live up to the standards and quality of journalism that we believe in and that i believe in. and that the company believes in. >> reporter: at issue a long running phone hacking scandal in which the victims had been largely celebrities. but there was outrage when allegations emerged that the paper hacked the phones of a schoolgirl who had been abducted and ultimately killed and victims of the terror attacks on london transport. the prime minister cameron former press sec caught in the hacking -- secretary caught in the hacking scandal called for an inquiry. >> what the government is doing is making sure that the public and i feel so appalled by what happened. murder victims and terrorist victims who had the phones hacks is quite disgraceful. there needs to be a full police investigation with all the powers they need. >> reporter: there's also allegations that "news of the world" paid police for what they needed. rupert murdoch didn'